Since the expanse of internet and its availability to most people all over the world the desire to make money online has become a driving passion for millions of people worldwide. To achieve the “internet lifestyle” one needs to strive to develop several streams of residual income that will make you money 24/7 on a continuous basis. In this article I will share with you 7 sure ways to earn passive or residual income online.
Please bear in mind that when I am talking about an “internet lifestyle” I am not referring to 7 income figure. I am talking about generating comfortable earnings that will enable you to drastically reduce your working hours, allow you to enjoy life and allow you to spend more time with your loved ones.
In my previous article that defined residual, recurring and passive income terms, I said that this type of income will bring you financial independence. As well, I mentioned that, contrary to what many online money seekers believe, this does not happen overnight and that your success is directly proportional to the quality and amount of work you put in at the beginning of the process. So without further ado, let me show you the 7 sure ways to earn passive or residual income online.
1. Monetize your website/blog. After you develop your website or a blog and begin to see a steady flow of traffic you can monetize your site. There are a number of ways to monetize in order to generate passive income.
a) Place Google Adsense on your site. You may read more on Google Adsense here. Despite much grumbling from people who lost their rankings (hence visitors and clicks on their ads) or had their adsense accounts banned (post Panda and Penguin algorithm major changes) many people are still making a lot of money with adsense placed on their sites. Just today I was reading a comment on one site that discussed adsense and a commenter mentioned that he is averaging about $1800.00 per month on one site from this type of monetization. Not a bad chunk of cash just from one residual income stream!
b) Create an Amazon product display widget. If you become an associate/affiliate with Amazon.com, you can “sell” Amazon products from your site. Actually, you are just forwarding your visitors to the product at Amazon. You will receive a commission. The beauty of this program is that when you send a customer to Amazon he will become “cookied” (for a lack of better words) for 24 hours. Whatever that customer buys during the 24 hours, the commission is yours. A friend of mine was telling me recently, that a customer viewed an Amazon product that cost around $20.00 from his site. Well, this customer that day spent $2400.00 on Amazon ( he bought some high end electronics, completely unrelated to what my friend was promoting) and my friend received a commission of about $200.00. This does not happen everyday, but it can happen often if you are promoting good products to a targeted audience.
c) Place advertizing banners or links for affiliate products on your site. As an affiliate of any product you will have banners and links available to you. When people click on these affiliate advertisements and eventually purchase the product, you will make commission, generally from 30% -70% (for example see digital products on Clickbank). Make sure to include promotion of affiliate products that have monthly recurring commission. These can be easily found on Clickbank or other marketplaces.
There are other advertising methods you can use, but the above three are the most commonly used ones by marketers. Please be cautious when you are selecting and placing the advertisement. Make sure that your site does not look too spammy. Neither the users nor the search engines like to be bombarded by advertisements. The users will abandon you and the search engines, particularly Google will “punish” you. Google does not like to see too much advertising above the fold (the top part of your website).
2. Include Product Reviews on your site. Product reviews are very powerful, especially if the review is of a product that you have used or are using yourself. The reviews will stay on your site for years to come and as long as the product will remain current and will be updated regularly, this review will be viable. When writing such a review, make sure to write honestly from your perspective and include the positive as well as the negative. Your reader appreciates your honesty. There is a dime a dozen reviews that are the exact (or almost exact) replicas of the sales pages. As far as I am concerned that does not work from me. I would never purchase from a person who cannot take the time to make a review unique.
I just want to make a note here, because this will not bring you money directly but it will, in a round about way. Suppose you purchased a product that promised that it will do something but it did not deliver. You either returned it and got your money back or this product is sitting somewhere on your cyber shelves. An honest negative review is extremely useful and your visitors will respect you for that. Your visitors will trust you and be willing to purchase products that you offer. Just remember, no bashing and if there were some good qualities in that product you must mention those too.
3. Create Squidoo and Hubpages. Both of these are free platforms that allow one to create free web pages. Both include revenue sharing programs. I personally have used Squidoo and not Hubpages (yet) so most of the following conversation revolves around Squidoo).
Many people poo-poo Squidoo and they are so wrong! Squidoo is a viable money maker from two angles. First, the revenue sharing and second, the traffic to your website and thus exposure to the products you are advertising. A good lens attracts huge amount of traffic and you can frequently see a Squidoo page on the first page of Google search for very competitive keywords.
A couple years ago I was researching Squidoo and found an example of a lady who was making about $800.00 from Squidoo alone. She did not even have her own website. You must agree that this “little” residual income is nothing to balk at.
4. Sell Your Own Informational Products. Informational products include ebooks, Kindle books, videos, podcast, ecourses and so on. They will bring you money regularly. Just have a look at some of the PLR package resellers. They are still making money on ebooks that, sad to say, are even outdated. I certainly would not recommend that you do that. An informational product needs to be updated to reflect the changes that take place online.
For the research of this article I was looking at some publicly available monthly income reports of some marketers. One person’s monthly income (from September 2012) really struck me as he made over $20, 000.00 commission from one product, I would never believe one could. It was not a printing error as he confirmed this income in the comment section, when asked. The result piqued my curiosity and I explored further. This income came from a simple information (NOT promotional!) video made years ago. The link to the product was in the section “see more” under the video, not even immediately visible!
5. Create Your Own Software and Plugins. If you have the technical ability, create your own software or plugins. You can do that even if you are not technical. In that case you can outsource the development process. The cost to do that is not that much for the return you will get. When you have your product, create an affiliate program and let the affiliates sell it for you.
You must update your software regularly and provide excellent support. If you don’t you will lose your customers, and potential future sales to them. Here is one example. I purchased a product that is pretty awesome, but I had a technical question. The creator of the program did not respond to me when I contacted him. I contacted him 3x. Finally, I requested a refund and had to initiate a paypal dispute to do so. The moral of my story is that despite the fact that I think his product is amazing and I would love to use it, without technical support it is useless. I would never buy from him again. Ever!
Some of you may think that because you have to keep regular updates on a product it does not qualify the product as a passive income. But remember, rental income is a passive income and I am sure you could not keep renting this property if you did not look after it and updated it on regular basis.
6. Turn The Software You Purchased Into Money Makers. This is a really cool residual income stream. A while ago I purchased an informational product on the WSO (Warrior Special Forum). Included in it was a huge number of “amazing” keywords. I did not purchase the product because of the keywords but I had a look at them. I had to chuckle when I realized that the “amazing” keyword list (which really was of value and amazing) was straight from a keyword software that even I use on regular basis. You may read about this software, called Stealth Keyword Competition Analyzer, in this article. It just shows you that all you have to do is use a little imagination!
7. Build a Membership Site. Membership sites are the greatest residual income streams. You can offer courses, guidance and whatever you think is of value to your customers. The membership site needs to be vibrant, interactive and regularly updated. Give to your customers what you would expect from others and the loyalty will build and your customer base will expand.
Well, there you have it, 7 sure ways to earn passive or residual income online. I am certain there are other ways as well, and I’ll be grateful if you would add your suggestion to the comments below. Lastly, some of the passive income streams seem small and hardly worth it, but remember, a stream flows into a river and the river into a vast ocean.